First-level analysis

The cross-site analysis revealed that the findings could be grouped into three categories. The Japanese subsidiaries in the Netherlands faced challenges with low managerial commitment (Table 6.3), communication problems (Table 6.4), and a high labour turnover rate (Table 6.5) as shown in the following.

Table 6.3 – Commitment challenge

Company Case description Exemplary Quotes

Heavy construction machinery

When the company was established in 2003, a production manager who was not experienced and committed to kaizen was leading production. In 2008, a new production manager was sent from the Japanese plant working with kaizen for 15 years. Kaizen is working more effectively than before. However results may fade away if the current production manager was replaced by another person not committed to kaizen.

„Now we have a current production manager who is professionalised in kaizen. The kaizen is running very well now because the managers are involved.

Operators are enjoying it. I think it is working very well but just in the surface level. If the top management was replaced let‟s say by the previous production manager who had no interests in kaizen, it will disappear immediately.‟ (Project manager) Slide

fastener

5S and kaizen tools were intensively used since the company was

established. However, top managers change every two to three years which led to inconsistency in strategy and support for kaizen. This affected negatively on employee motivation.

„Level of kaizen activities is depending on MD. We had many changes of MD.

Every four years. Mr. A (current MD) was here since August last year. Before that Mr. B was here for two and a half years. MD before that was Mr. D. This is not a good strategy.‟ (Production manager)

Sensors Kaizen started when the company was established in 1988. The kaizen

„Kaizen started when the company was established, which means from the start.

At that time the company was set up and was led by Japanese managers. Kaizen mentality was quite supported during the first 5 years. Then another management took over. These activities faded away.‟

(MD)

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Table 6.3 Continued

Company Case description Exemplary Quotes

Welding material

MDs change every 5 years. It is affecting negatively on the kaizen

„Our MD is changing every 5 years.

Current MD is here for more than a year. Every MD is doing totally different things. So kaizen totally depends on MD.

If the MD is changing, it is not so nice.‟

(Production manager)

Table 6.4 – Communication problems

Company Case description Exemplary Quotes

Heavy Construction Machinery

Japanese had difficulties

conveying message and sense of urgency to the employees due to the language problem. The company bought a book about Toyota production systems and asked operators to study it individually. However, the progress of kaizen was found too slow.

„Operators didn‟t understand what I said with my poor English. Even though they don‟t come to ask me any questions so I wasn‟t sure whether they really understand.‟

(Production manager)

Slide fastener Communication was not going well between Japanese and Dutch employees. Japanese staff were continually saying to do kaizen but they did not explicitly mention the benefits of doing it. Dutch

operators felt that they were forced to be involved in kaizen activities.

„Communication was not so well between Japanese staff and our staff so at that time. It [kaizen] was quite low. Japan manager keep saying 5S!5S! 5S! No waste! No this no that!‟ (Production manager)

Table 6.4 Continued

Company Case description Exemplary Quotes

Sensor The communication issues were found when the initial Japanese were managing the factory.

Although they were committed to kaizen, they could not convey the benefit of doing kaizen to Dutch employees sufficiently due to their insufficient communication skills.

„If they can explain an advantage of kaizen in good English, and what you gain from it, you get believers. But if you cannot convince me I will never believe you. I think it is not only a communication but also a cultural problem. When culture clashes, communication will not go well. You have the feeling that you are not being understood.‟ (Shop floor Japanese and Dutch, it is difficult to develop a good relationship.

„I cannot give detailed explanations due to my poor English. When Dutch operators face a problem, I want to give only a hint so [they] themselves can think about the solutions but this is not possible so I just give them solutions directly.‟ (Production advisor)

Electrodes They have issues conveying the benefit of doing kaizen manly due to the insufficient language skills of Japanese staff. As a result, trust making between Dutch and Japanese employees proved difficult.

„There is an issue with language. I feel a distance from the Dutch employees because I cannot participate in their conversation. I cannot develop something like trust if I cannot communicate well. Kaizen is difficult without teamwork feeling.‟

(Production advisor) Beverage Some Japanese staff had

insufficient English speaking skills they will face resistance; they are reluctant to introduce kaizen

„The language issue. It affects on the daily communication. Accumulation of small misunderstanding results in difficulties developing good

relationship with Dutch operators.

As you know that without trust, we will face resistance. So we are reluctant to introduce kaizen‟

(Production manager)

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Table 6.4 Continued

Company Case description Exemplary Quotes

Plastic building material

Language issue was found to be hindering the team-working climate of the company. This was negatively affecting the transfer of kaizen.

„There is a climate for kaizen. People think about suggestion[s] or

improving performance when there is such a climate. You have to tell employees why we have to do kaizen and how kaizen ease[s] the hard labour. I believe that is easier if you understand the Dutch culture and the language.‟ (MD)

Table 6.5 – High labour turnover rate challenge

Company Case description Exemplary Quotes

Heavy Construction Machinery

An issue regarding the higher labour turnover rate was found. It influenced the commitment of employees. It also hindered accumulation of knowledge in the company.

„People don‟t root here. Even we spend a lot of time teaching the basics of kaizen concepts [because] that the Netherlands is not suitable for kaizen development due to the higher labour turnover rate. In Japan, where long-term employment is widespread, the knowledge transfer took place between experienced operators to the newly hired operator. In the Netherlands, this type of training is difficult.

„There is a problem of high labour turnover rate. Now we have two Japanese technicians working here but the operators who they trained 2 years ago already left the company […] the current situation is like training newly hired employees.‟

(Production advisor)

Electrodes Issues exist regarding the high mobility rate. The company is thinking to formalize the process to prepare for the situation when people leave the company.

„Kaizen mentality or loyalty towards the company is relatively easy to develop where there is a lifetime employment. For those people who do not expect to work in the same company for long time, it is difficult to develop this mentality.‟ (MD)

Table 6.5 Continued

Company Case description Exemplary Quotes

Beverage Japanese managers think that it is very difficult to implement kaizen in the Netherlands due to the short–term employment systems and less commitment to the company.

„The current situation is like people don't want to do anything actively until serious problems happen.

Although the top management creates the system, let‟s say small group activity, or kaizen, they don‟t follow because the lifetime

employment is very weak in the Netherlands.‟ (Director production) Forklifts In the Japanese factory where

lifetime employment is widespread, the knowledge transfer from person to person is common. In the Netherlands, where the employment systems is short term contract based, it was found that this is not possible.

„In the lifetime employment, we can transfer know-how from person to

Safety glass The OJT systems that are commonly used in the Japanese factory are difficult to implement in the Netherlands because the labour turnover rate is higher and there are fewer experienced operators.

„In Japan, there are experienced senior operators who teach newly hired operators how to operate or maintain machines. In Japan, when a new operator is hired, someone trains him. I cannot find that kind of thing here. It is like you should do it by your own.‟ (Vice president) Plastic

building materials

In the Japanese company, most of the kaizen activities took place after the work. It was difficult to practice this because people are not willing to work overtime to involve in the kaizen activities.

„In Japan, the kaizen activities took place after work. In the Netherlands, this is not possible because people are reluctant to work overtime.

Japanese tend to stay after work for kaizen or willing to work…or work without complaining. (Production manager)

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